US stainless steel processor buying prices climbed on Monday for most grades with processors encouraging scrap flows, though suppliers preferred to hold on to the material until the New year.
The daily Davis Index for scrap 304 solids inched up by 0.4¢/lb to 68.8¢/lb delivered processor yard while 316 solids rose by 1.1¢/lb to 89.3¢/lb for single truckloads delivered US processor.
The index for scrap 304 turnings was better by 0.5¢/lb climbing to 64.1¢/lb delivered and was flat at 81.3¢/lb for 316 turnings delivered US processor.
LME Nickel prices increased by $57/mt from $17,013/mt on Thursday, to close at $17,070/mt on Tuesday.
Participants in the stainless-steel processor buying market are looking at trends in the January ferrous market, with Turkey pushing ferrous prices higher this past month and scrap remaining very tight. Stainless scrap suppliers believe that waiting until after the domestic ferrous scrap markets settle higher in January is a low-risk bet, allowing them to sell at higher prices to US processors who will have to raise their buying prices to match the market’s uptrend.